Copper producer Austral Resources Australia Ltd (ASX:AR1) has finalised the binding exploration earn-in agreements with Mount Isa Mines (MIM), a subsidiary of one of the world’s largest mining companies Glencore.
The executed agreements are for MIM to explore Austral’s exploration permits (within the JV area) surrounding MIM’s Lady Loretta zinc, lead, and silver mine and Austral’s Lady Annie copper mine and for Austral to explore for copper oxide over MIM’s neighbouring Russell Fault tenement.
As announced to the market on 8 June 2022, Austral and MIM entered into a value generating nonbinding complementary Exploration Earn-in Agreement with Austral to expand its oxide exploration activity in both the Exploration Area and within MIM’s prospective Russell Fault EPM.
Under the Earn-in Agreements, the parties agree to share exploration data and certain resources.
Austral retains the rights to the copper oxide mineralisation within the exploration areas and will also explore for copper oxides within MIM’s Russell Fault tenement, effectively adding 116 square kilometres of highly prospectieve tenure.
MIM needs to spend $6.3 million within the Exploration Area over 4 years to earn-in to a 65% holding, with Austral retaining a 35% interest.
Austral needs to spend $2 million within the Russell Fault over 4 years to earn up to a 65% interest.
Austral’s managing director and chief executive Dan Jauncey said: “This is an exciting JV with Glencore’s Mount Isa Mines, as the additional expenditure increases the potential for further discoveries.
“Austral stands to benefit greatly from working with and learning from MIM’s seasoned exploration team and we look forward to updating the market with our exploration plans over coming months.”
